Does New York Have a Transfer-on-Death Deed?

Yes, now it does. As of July 19, 2024, New York recognizes the transfer-on-death (TOD) deed under Real Property Law §424. This is a big change: for the first time, New Yorkers can name a beneficiary directly on a deed so their home passes to that person automatically at death, without probate. If you read older guides saying New York does not allow this, they are out of date.

How a New York transfer-on-death deed works

A TOD deed lets you name one or more beneficiaries to receive your property when you die. While you are alive, you keep full control, you can live in it, sell it, mortgage it, or revoke the deed entirely, and the beneficiary has no rights until your death. Because you keep ownership during your lifetime, your beneficiary generally receives a stepped-up cost basis at your death, which can significantly reduce capital gains tax if they later sell.

What makes a NY TOD deed valid

• It must be signed and notarized (acknowledged), like any deed.
• It must be signed in front of two witnesses, who also sign.
• It must be recorded with the city or county register before your death to be effective.
• It can be revoked or changed during your lifetime.

That signing, notarizing, and recording is exactly what we handle, see our deed recording services.

TOD deed vs. the other ways to avoid probate

The TOD deed is now one of several tools to pass your home outside probate in New York:

Transfer-on-death deed. Simple, revocable, keeps control, preserves the step-up in basis. Best when you want a straightforward beneficiary designation for one property.

A living trust. More flexible for multiple assets or complex wishes, and it can help with incapacity planning, not just death.

Joint ownership with right of survivorship. Your share passes automatically to the co-owner, but it gives that person ownership rights now.

A life estate deed. Transfers the remainder now while you keep the right to live there, but it is harder to undo and can trigger the Medicaid five-year look-back.

An important caution

These options have very different tax, Medicaid, and family consequences. A TOD deed keeps control and the step-up, while an outright gift during life can cost your family the step-up and trigger the Medicaid look-back. The right choice depends on your situation, so this is a conversation worth having with a licensed attorney. When you are ready to sign and record, we handle the notarization and recording.

The two formalities that trip people up

A transfer on death deed is not a form you fill in and file away. Two requirements catch almost everybody.

Two witnesses. Ordinary New York deeds do not require witnesses. This one does, and both witnesses sign. If you treat it like a normal deed signing, it fails on this point alone.

Recording before death. The deed has to be recorded while the transferor is alive. A signed, notarized, witnessed transfer on death deed sitting in a drawer accomplishes nothing. This is the single most consequential difference between this document and a will, and it is where good intentions most often come apart.

In New York City that means the City Register for Manhattan, the Bronx, Brooklyn and Queens, and the County Clerk for Staten Island.

What the beneficiary inherits, including the debt

The property passes subject to whatever is attached to it. An outstanding mortgage does not disappear at death, and neither do liens, judgments or unpaid taxes recorded against the property.

So a beneficiary who receives a house with a mortgage on it receives a house with a mortgage on it. That is not a flaw in the tool, but it is worth saying out loud to whoever you are naming, because people hear the word inherit and picture something free.

What happens if the beneficiary dies first

If the person you named does not survive you, the transfer to that person does not happen. This is why naming an alternate beneficiary matters, and why a transfer on death deed executed years ago and never revisited is a risk rather than a plan.

The same applies after a divorce, a falling out, a death in the family or the birth of children you would want included. Review it when your life changes, not on a schedule.

Changing your mind

The deed is revocable during your lifetime, and you keep full ownership in the meantime. You can sell the property, mortgage it, or revoke the designation entirely, and the beneficiary has no say in any of it.

The important detail is that a revocation follows the same formalities: it is executed and recorded the same way. Tearing up your copy does not revoke a recorded instrument, and telling the beneficiary you have changed your mind is not a revocation either.

Two things it does not solve

It does not address incapacity. A transfer on death deed operates at death and does nothing if you become unable to manage your affairs while alive. That is a different set of documents.

And it is not a Medicaid planning tool. How a transfer on death deed interacts with Medicaid eligibility and estate recovery is a genuinely complicated question with real money attached, and it is exactly the kind of question a notary is prohibited from answering. If Medicaid is any part of why you are considering this, talk to an elder law attorney first.

What we do and what we do not

We notarize the acknowledgment and handle the recording, and recording is the step this document lives or dies by. Because the statute requires an acknowledgment before a notary, and because this is a deed rather than an ordinary affidavit, plan on an in person signing with your witnesses present.

What we will not do is draft the deed, tell you whether this or a trust fits your situation, or advise on the tax and Medicaid consequences. A New York notary cannot give legal advice, and on this document the stakes are the house.

Tell the beneficiary it exists

A recorded transfer on death deed only works if somebody knows to act on it. The beneficiary will need a certified death certificate and, in practice, guidance on what to file to put the transfer into the record cleanly.

So do the unglamorous part. Tell the person you named, tell them where the recorded deed and the rest of your documents are kept, and give the same information to one other person you trust. Families lose more time to nobody knowing what exists than to any defect in the paperwork itself.

Frequently asked questions

Can I add a beneficiary to my deed in New York now?
Yes. Since July 2024 you can use a transfer-on-death deed to name a beneficiary who receives the property at your death.

Does a TOD deed avoid probate?
Yes. The property passes directly to your named beneficiary without going through probate, as long as the deed was properly executed and recorded before death.

Does a TOD deed need to be recorded?
Yes. It must be recorded with the city or county register before your death to be valid. See how to record a deed in NYC.

This article is general information, not legal advice. Estate and property decisions have lasting consequences, so consult a licensed attorney.